16/08/2007 Exchange welcomes Canton Property Ltd to AIM
16 August 2007
The London Stock Exchange is delighted to welcome Canton Property Investment Ltd to AIM.
Canton Property Investment Ltd (Canton Properties) is a commercial property development and management group, based in Hong Kong and operating in mainland China.
Canton Properties announced the placing of 55 million new ordinary shares at US $0.90 per ordinary share to raise $49.5 million (gross of expenses). Concurrent with the placing, the company’s founders sold 6.1 million existing shares at the placing price. The company will have a market capitalisation of US $368 million at the placing price.
Canton Properties will initially focus on the development, management and operation of shopping malls in Guangzhou, China’s wealthiest city in terms of GDP per capita. The projects are considered by the company to have the potential to generate significant capital appreciation and stable returns from rental income. As it moves forward, the Group intends to achieve its objectives by creating and maintaining a more widely diversified portfolio of properties at various stages of development. It will include completed retail and commercial properties, as well as projects currently under construction, not only in Guangzhou - where it is considering developments in the Pearl River New City - but also in other regions of China with high growth potential in the short to medium term.
Commenting on the admission to AIM, Canton Properties’ Chief Executive Charlie Lin said:
“We are delighted to have received such strong support from backers who understand the fundamentals of our business in China. Now we are offering AIM investors the chance to benefit both from mainland China’s commercial property boom and from its consumer spending boom.”
Broker and Nomad: Libertas Capital
Financial PR: First City (China) Ltd
Legal advisors: Stephenson Harwood